https://www.taxtmi.com/caselaws?id=255655 Section 17 of the Karnataka Value Added Tax Act, 2003 applies only where purchased inputs have a direct nexus with exempt output or are used in mixed taxable and exempt supplies, requiring apportionment of input tax. Where a dealer manufactures a taxable product and an exempt article emerges only as an incidental by-product, without any separate manufacturing activity directed to that by-product, the sale of that by-product does not trigger proportionate reversal of input tax credit. Full input tax deduction was therefore allowed on these facts, and the denial of credit was set aside. en-us Thu, 17 Jul 2014 00:00:00 +0530 Tue, 22 Sep 2015 10:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255655 Section 17 of the Karnataka Value Added Tax Act, 2003 applies only where purchased inputs have a direct nexus with exempt output or are used in mixed taxable and exempt supplies, requiring apportionment of input tax. Where a dealer manufactures a taxable product and an exempt article emerges only as an incidental by-product, without any separate manufacturing activity directed to that by-product, the sale of that by-product does not trigger proportionate reversal of input tax credit. Full input tax deduction was therefore allowed on these facts, and the denial of credit was set aside. Case-Laws VAT and Sales Tax Thu, 17 Jul 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255655